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* Rolls-Royce posts record reported loss
* TUI jumps on improved results
By Kit Rees
LONDON, Feb 14 Britain's top share index traded
flat on Tuesday, pausing after a five-day winning streak as
Rolls-Royce tumbled after reporting a record loss.
The blue chip FTSE 100 index was flat in percentage
terms at 7,279.54 points by 0946 GMT in choppy trade, having hit
its highest level since mid-January in the previous session.
Shares in engineering firm Rolls-Royce dropped 4.9
percent after the company announced a 4.6 billion pound ($5.8
billion) loss, hit by a fine to settle bribery charges and by
losses on its currency hedges.
The stock was the most actively traded on the FTSE 100, with
more than 87 percent of its 30-day average volume traded in the
first hour of the session. Fellow defence firm BAE Systems
also fell nearly 2 percent.
Analysts cited concerns about Rolls-Royce's outlook as
putting pressure on the shares.
"Some investors may also have a restive reaction to the
rather dry and narrow outlook comments, projecting only 'modest
performance improvements' and similar free cash flow generation
as in 2016," said Ken Odeluga, market analyst at City Index.
Improved earnings, however, buoyed shares in travel firm TUI
, which jumped 4.8 percent and was on track for its best
day since early July 2016.
TUI reported a narrower loss for the first quarter of 66.7
million euros, a 17 percent improvement on last year, and said
it aimed to start offering holidays to customers from countries
such as China, India, Spain and Italy.
Analysts cited the sale of its specialist holiday arm
Travelopia to KKR in a $407 million deal as a further
boost to its shares.
"While we have reservations about the outlook for source
markets, we are attracted to the increased diversification and
the steps TUI that has taken to drive growth elsewhere in the
business," analysts at Berenberg said in a note.
Among smaller companies, a solid set of results boosted
shares in Acacia Mining, which rallied 6.7 percent and
was the biggest mid cap gainer.
The gold miner said that production in 2017 would rise 40
percent, and proposed more than doubling its dividend.
(Reporting by Kit Rees; Editing by Mark Trevelyan)